NDIC RAISES INSURED DEPOSIT TO N5M

March 2, 2024

By Linda Ike

The Nigeria Deposit Insurance Corporation (NDIC) has increased the maximum deposit insurance coverage levels for all licensed deposit- taking financial institutions with immediate effect.

Managing Director of NDIC, Mr. Bello Hassan announced this at a news conference on the review of maximum deposit insurance coverage in Abuja.

He said the maximum deposit insurance coverage of Deposit Money Banks(DMBs) was increased from N500,000 to N5, 000,000, Microfinance Banks from N200,000 to N2,000,000 while coverage level for Primary Mortgage Banks is now N2,000,000 from the previous amount of N5000,000

He said, “The increase of the maximum deposit insurance coverage from N500,000 to N5,000,000, would provide full coverage of 98.98% of the total depositors compared with the current cover of 89.20%.

‘In terms of the value of deposit covered, the revised coverage would increase the value of deposits covered by deposit insurance to 25.37% compared with the current cover of 6.31% of total value of deposits. ii. Microfinance Banks (MFBs):

“The increase of the maximum deposit insurance coverage from N200,000 to N2,000,000, would provide full coverage of 99.27% of the total depositors compared with the current level of 98.76% and would increase the value of deposits covered by deposit insurance to 34.43% compared with 14.38% of total value of deposit, currently covered.

“The increase of the maximum deposit insurance coverage from N500,000 to N2,000,000 would provide full coverage of 99.34% of the total depositors compared with the current 97.98% and would increase the value of deposits covered by deposit insurance to 21.04% compared with 10.77% of total value of deposit, currently covered.

“The increase of the maximum deposit insurance coverage from N500,000 to N2,000,000 would provide full coverage of 99.99% of the total number of depositors and would increase the value of deposits covered by deposit insurance to 43.10% of the total value deposits from the current cover of 40.60%. v.

” The increase of the maximum Pass-through deposit insurance coverage from N500,000 to N5,000,000 per subscriber per MMO as the applicable coverage level for depositors of DMBs.

Mr. Hassan urged depositors not to be deceived by mouthwatering interest rates presented by some non-licensed deposit financial institutions.

He said that only the CBN-licensed deposit financial institutions were insured by the NDIC.

He added that the NDIC would only pay maximum deposit insurance to depositors of the licensed institutions